A Property Coach is not dissimilar to a Personal Trainer. Hear me out…
We’re all pretty familiar with the concept of a personal trainer, a piano teacher or a sports coach. But when I ask many people if they have heard of a “Property Coach” or a “Property Mentor” I am often met with a blank face. Well, it’s either that or they imagine a car-salesman-like ‘spruiker’ looking to make a quick dollar off an unsuspecting victim!
This is the first instalment of my new blog series, where I hope to demystify the concept of mentoring or coaching for property investors. In writing this, I wish simply to share my thoughts and experience on what is required to successfully design and implement a property acquisition plan and ongoing strategy, to meet the needs and goals of an investor.
The general concept of both ‘coaching’ or ‘mentoring’ (though the two differ slightly in definition) is having someone, who has more experience than you, to provide guidance and support.
What is really interesting is that in New Zealand there tends to be a ‘Do It Yourself’ attitude to investing, which is in direct contrast to how we think in others areas of our life. For example, many of us engage the services of a Personal Trainer to help us achieve our fitness and health goals, or a sports coach to improve our golf handicap, or a music teacher to master the guitar. However, when it comes to our financial health and long term financial security we adopt the “she’ll be right” attitude and forge ahead without any sound education or plan at all. Sounds pretty topsy-turvy, right?
The truth is, property investment is “not one size fits all”, yet I come across so many “investors” who have simply copied what their friend or work colleague has done as it “worked for them, so it should work for me”. No consideration seems to be given at all to the totally different circumstances they may be in – it’s a disaster waiting to happen and we often don’t have to wait long to see that play out. Instead, a Property Coach would have been able to tailor a property investment plan that met the client’s own personal goals and needs.
Recently I came across a survey on how much people were prepared to pay for financial advice or help with their retirement plans, and I was totally stunned at the amount – less than $50. It’s incredible that those same people will pay that for lunch with a friend or a night out at the movies. It baffles me that something so important as your financial future is left out of the budget. When it comes to finance, it’s certainly true that ignorance is more expensive than education.
Your Personal Property Investing Strategy
Your property investment strategy should be based on a set of criteria that are based on your personal circumstances. Until you fully understand this, you will be speculating at best, not investing. Before a suitable strategy can be selected, consideration has to be given to the following:
- Current financial situation
- Short, mid and long term goals
- Knowledge base and skill set
- Entity structuring / tax considerations
- Time frame available, in regard to years to retirement and your current capacity outside of your other commitments
Once these areas are clearly identified, it becomes a process of reviewing the available and suitable investing strategies to create a road map for your investment journey, which is both workable and achievable. Only after mapping this out can we proceed to the next step…
In the next post, we will discuss the second step on your property investment journey. We will be learning not to follow the crowd and instead to ask ourselves: “what is the highest and best use of our capital based on our goals and with consideration to the current market conditions?”
Interested in learning more about property investment coaching? Or want to learn more about getting your portfolio on the right track? Register for a free two-hour property investment seminar near you.